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Auction - Building Surveys
steve08 posted a topic in General property discussionHi All, New to this forum and starting out my property investing journey - Interested in professional B2Ls in Birmingham going with a BRRR strategy as well as looking at small ground up developments in London and SE for bespoke (think standalone garages, small plots of land with planning potential which I flip at auction once planning granted or develop myself). Keen to experience an auction so will get myself down to one after lockdown! Quick question about those who have purchased properties at auction - I note the benefit of having a survey done however the cost being potentially prohibitive to 1st time investors. Do you think there is scope for a service where auction bidders could share the cost of a building survey? Surely it would help with price discovery and also lower the barriers to investing at auction. Interested to know the forum's thoughts. Thanks
Expat in NZ wanting to invest in uk
Jimmy Hailwood posted a topic in General property discussionHey im looking to invest in the uk through a ltd company with my twin sister. She'd be director and I'd be a share holder. Is this possible to do? What's the tax situation for this scenario? If im receiving rent would that go against my tax free allowance? Who do I speak to too gain more info on this
Critique my portfolio - advice welcomed
James S posted a topic in General property discussionHello all, I'm looking for some advice, I'm 25 and I've currently got a portfolio of 3 properties. My strategy this year was to carry on buying, but after having a meeting with my accountant he said perhaps it's worth me slowing down to see what changes brexit could bring. Everyone seems to have slowed down and I personally think this is a great time to try and take advantage of a slower market. Anyway, below is my current portfolio, if you need any further info please drop me a message - Property 1 Purchased for £214,750 Outstanding mortgage £140,000 Current value £250-£260 Net PCM - £525 Property 2 Purchased for £92,500 Outstanding mortgage £75,500 (Have refinanced) Current value £100,00 Net PCM - £226 Property 3 Purchased for £92,500 Outstanding mortgage £69,375 Current value £100,000 Net PCM - £330 My plan was to remortgage property 1 and pull some equity out to buy a further 1 or 2 investment properties. I've worked really hard to build this portfolio and I don't want to ruin it all by putting a foot wrong somewhere. I could potentially pull 50k out of property 1 and add it to my savings, to have a total of £100k ready to put towards new investments. Do you think I'm over leveraged? Do you think my strategy has holes in it? I would love to hear other investors opinions. I'm not in a massively high paying job, I earn over £25k but under £40k. I still live with my parents (believe it or not!) so my outgoings are fairly minimal, giving me a good chance to save as much as I can. There are 4 main strategies I see as options - 1 - Buy 3/4 £60-£80k at 75% LTV properties up north, Manchester, Sheffield, Liverpool etc, this should cashflow around £1000-£1200 PCM. I would also expect to see some good capital growth here 2 - Buy 1 HMO property for £250-£300k at 75% LTV, this should also cashflow a similar amount 3 - Pull out a smaller amount of equity from property 1 and fix it on a 5 year deal. Add this money to my savings and put down a 35% deposit on a property, this should make about £675-£750 PCM. Purchase the new property on a 5 year fix and then aggressively pay the property down by £7500PA for 5 years to reduce my overall debt 4 - Fix Property 1 on a 5 year deal, sit tight and do nothing. This is the answer I fear the most, although I want to play things safe and not put a foot wrong, I also understand that to develop myself financially I need to take a certain amount of risk to increase my earnings. I'm currently on option 3, as it increases my cashflow and also mitigates risk as much as possible. Which one would you choose and why? I welcome any advice and opinions from other investors. Thanks for reading. James
Critique my deal please!
James S posted a topic in Critique My DealHi all, Just looking for other investors opinions on a potential deal I've been looking at - 2 bed terrace in Kingstone, Barnsley Asking price - £75,000, expect to get it for £70,000 - numbers based on £75k though Rent - +£450 (tenant in situ) Interest only mortgage at 3% on £56250 -£140 Management at 7.5%+ VAT -£35 Buildings Insurance -£12 Total NET - £263 PCM Money in - £22,300. I would appreciate your thoughts. Thanks, James
Should I Sell my existing B2L
propertyhub_thesleats_com posted a topic in Strategy Specific AdviceHi all, I currently have 6 properties that I let (5 personally and 1 in a limited company), and I'd like to continue to build my portfolio. We inherited a couple of our properties when my mother died and to be honest the ROI isn't very good, so I'm wondering if we'd be better off selling these and buying elsewhere where the yields would be better. Obviously the down side to this is that we'd need to pay CGT on the sale and Stamp Duty on the purchase. So here are the actual numbers for one of the properties: Original Purchase Price (Actually the price when inherrited): £185,000 (2014) Value now: £290,000 Mortgage: £147,000 Equity: £143,000 Annual Rent (Gross): £10,200 Annual Rent (After Mortgage): £7,128 Annual Mortgage: £3,072 (Rate 2.09%) LTV: 50% Gross Yield: 3.52% Gross ROI: 7.13% Net ROI: 4.98% As you can see it's not a great investment. Note that the rental cover means that I can't increase the LTV! But if we sold we'd need to pay CGT, so that's: Value increase = £105,000 CGT Allowance = £23,400 Subject to CGT = £81,600 @ 28% = £22,848 So after repaying the mortgage and CGT I'll have approx £120,152 left (Minus legals etc). I guess the question is, can I take that £120k and buy something else that provides significantly higher returns? Surely the answer must be yes? With £120k we should easily be able to buy a single £400k property at 75% LTV (Or two 200k properties) with a total rental income well over £1,500pm on with mortgage of around £700pm. Are there any blinding errors or omissions with the above? Another option is to use the money and go down the BRR route, which actually appeals to me as I want to build up my portfolio a little more rapidly. Thanks in advance for any feedback. Ben